Posts Tagged ‘Bullish Options strategies’

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

CDNS is seeng breaking higher from a triangle pattern which signals a continuation of the broader uptrend, often with a pick up in upside momentum. In addition to the technical break, the stock is one of few on the IBD Top 50 List, and in the broader markets for that matter, that is on the verge of breaking to record highs.

CDNS Chart January 2019

*source Tradingview.com

If you agree there’s further upside ahead for CDNS, consider this trade which is a bet that the stock will continue to advance over the next four weeks, or at least not decline very much.

Buy To Open CDNS 15FEB19 43 Puts (CDNS190215P43)
Sell To Open CDNS 15FEB19 46 Puts (CDNS190215P46) for a credit of $0.65 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when CDNS was trading near $47. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $62.50 and your broker would charge a $300 maintenance fee, making your investment $237.50 ($300 – $62.50). If CDNS closes at any price above $46 on February 15, both options would expire worthless, and your return on the spread would be 26% (380% annualized). Note: Options on CDNS are fairly illiquid, with large bid-ask spreads. It would be especially important to place a limit order rather than a market order here.

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates January 17, 2019

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Can CyberArk Software (CYBR) Continue the Upside Momentum?

The Investor’s Business Daily recently published an article picking out CYBR as one of the 5 best companies that stand to gain as the market rallies, view the full article here. As well, take a look at this article published on Zacks that details CYBR as an outperformer among its peers.

From a technical perspective, the main appeal to CyberArk’s stock is that it’s trading within a rising trend channel while a majority of stocks remain within a declining trend channel, which is an indication of strength. In fact, looking at the CYBR chart alone, it would not be apparent that the broader markets had such a volatile decline in the last two months of 2018. The stock price ended last week near highs and looks to be threatening a break above the December top.

CYBR Chart January 2019

*source Tradingview.com

If you agree there’s further upside ahead for CYBR, consider this trade which is a bet that the stock will continue to advance over the next four weeks, at least a little bit.

Buy To Open CYBR 8FEB19 75 Puts (CYBR19028P75)
Sell To Open CYBR 8FEB19 78 Puts (CYBR19028P78) for a credit of $1.33 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when CYBR was trading near $80. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $130.50 and your broker would charge a $300 maintenance fee, making your investment $169.50 ($300 – $130.50). If CYBR closes at any price above $78 on February 8, both options would expire worthless, and your return on the spread would be 77% (1124% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates January 10, 2019

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Five9 has consolidated higher since hitting a low in late October and is seen trading within a range. The stock is an outperformer as most stocks posted losses in the last two months of the year. A technical pattern is emerging as a triangle can be drawn around the recent consolidation. To the upside, a break above $44.40 would suggest a bullish breakout. There is a confluence of downside support deriving from a rising trendline, the 50-day moving average, as well as a horizontal level. The horizontal level, which resides at $39.55, is considered well respected as it has acted both resistance and support on several occasions since the initial test in June.

*source Tradingview.com

If you agree there’s further upside ahead for FIVN, consider this trade which is a bet that the stock will continue to advance over the next six weeks, or at least not decline very much.

Buy To Open FIVN 15FEB19 35 Puts (FIVN190215P35)
Sell To Open FIVN 15FEB19 40 Puts (FIVN190215P40) for a credit of $1.18 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when FIVN was trading near $43. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $115.50 and your broker would charge a $500 maintenance fee, making your investment $384.50 ($500 – $115.50). If FIVN closes at any price above $40 on February 15, both options would expire worthless, and your return on the spread would be 30% (281% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates January 3, 2019

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

KL has made a clear break higher this month to trade at record highs. The company stands out when compared to other IBD Top 50 stocks as it is the only one to make a decisive break higher. The main appeal to KL is the recent acceleration in upside momentum which is evident on nearly every time frame. Horizontal support is found near $23 as the level held the stock lower over the summer, however, considering the bullish momentum, investors may look to step in ahead of the level.

KL Chart December 2018

*source Tradingview.com

If you agree there’s further upside ahead for KL, consider this trade which is a bet that the stock will continue to advance over the next seven weeks, or at least not decline very much.

Buy To Open KL 15FEB19 22.5 Puts (KL190215P22.5)
Sell To Open KL 15FEB19 25 Puts (KL190215P25) for a credit of $.93 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when KL was trading near $25. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $90.50 and your broker would charge a $250 maintenance fee, making your investment $159.50 ($250 – $90.50). If KL closes at any price above $25 on February 15, both options would expire worthless, and your return on the spread would be 57% (452% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates December 27, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

The main technical appeal to MTCH is its outperformance relative to the overal markets. Note the stock is about 16% higher to the low posted in late November while SPY dropped abruptly to fresh yearly lows in the past week. As well, the stock boasts a 24% gain for the year, despite the decline from September highs. Major support is found at $33.50 and this level held MTCH higher last month. Support is also seen near $39, reflecting the high ahead of the earnings inspired gap up in August. From a technical standpoint, there is a large gap that should be covered by a $48 price at some point (as the earlier upside gap was eventually covered).

MTCH Chart December 2018

*source Tradingview.com

If you agree there’s further upside ahead for MTCH, consider this trade which is a bet that the stock will continue to advance over the next four weeks, or at least a little bit.

Buy To Open MTCH 18JAN19 36 Puts (MTCH190118P36)
Sell To Open MTCH 18JAN19 39 Puts (MTCH190118P39) for a credit of $1.10 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when MTCH was trading near $39. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $107.50 and your broker would charge a $300 maintenance fee, making your investment $192.50 ($300 – $107.50). If MTCH closes at any price above $39 on January 18, both options would expire worthless, and your return on the spread would be 56% (818% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates December 20, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

As outlined by one of the above articles, MA is currently facing it’s 200-Day moving average. Althought the article points out that the stock technically trades below it, there does not seem to be enough evidence of a clear break, or that bears have taken control. The stock has held above a horizontal level found near $193 found close to the moving average that has acted as both support and resistance on several occasions since May. Dips below this confluence area of support in the recent past have been short-lived, as seen on a monthly chart, where the stock has managed to hold above $197 on a monthly close basis.

MA Chart December 2018

*source Tradingview.com

If you agree there’s further upside ahead for MA, consider this trade which is a bet that the stock will continue to advance over the next six weeks, or at least not decline very much.

Buy To Open MA 25JAN18 190 Puts (MA190125P190)
Sell To Open MA 25JAN18 192.5 Puts (MA190125P192.5) for a credit of $1.10 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when MA was trading near $195. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $107.50 and your broker would charge a $250 maintenance fee, making your investment $142.50 ($250 – $107.50). If MA closes at any price above $192.5 on January 25, both options would expire worthless, and your return on the spread would be 75% (702% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates December 13, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

The technical appeal in MEDP is it’s outperformance compared to the broader markets as well as some of the other stocks on the IBD Top 50 list. MEDP has had a pickup in upside momentum since late October which seems to suggest it has resumed it’s uptrend following a correction. In the past week, the stock saw some sellers near the $64 price point which resulted in a decline towards its 20-day moving average. A break of $64 would have the stock trading at all time highs. The stock appears to be well supported here with further support slightly below the 20-day moving average at $55 which was a level that held it higher after the gap up in late July. As well, there is a rising trendline near the horizontal level that is drawn by connecting the October and November low

MEDP Chart December 2018

*source Tradingview.com

If you agree there’s further upside ahead for MEDP, consider this trade which is a bet that the stock will continue to advance over the next six weeks, or at least not decline very much.

Buy To Open MEDP 18JAN19 50 Puts (MEDP190118P50)
Sell To Open MEDP 18JAN19 55 Puts (MEDP190118P55) for a credit of $1.33 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when MEDP was trading near $58. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $130.50 and your broker would charge a $500 maintenance fee, making your investment $369.50 ($500 – $130.50). If MEDP closes at any price above $55 on January 18, both options would expire worthless, and your return on the spread would be 35% (312% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates December 6, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Last week, the market (SPY) enjoyed its best week in 7 years. The 8 real-life option portfolios carried out by Terry’s Tips shared in the good news. Our composite portfolio value gained 27% for the week, one of our best weeks ever.

From a technical perspective, INTC is facing a wall of resistance consisting of the psychological $50 barrier as well as the 200-day moving average. However, the stock is seen consolidating below this resistance zone through out the month of November within a relatively small range which signals a lack of selling pressure. This type of price action usually suggests that the bears are not in control and that the stock may well be on the verge of breaking higher. As well, on a weekly chart, INTC posted a bullish engulfing candle as a result of price action in the past week which signals strength and favors a continuation higher.

INTC Chart November 2018

*source Tradingview.com

If you agree there’s further upside ahead for INTC, consider this trade which is a bet that the stock will continue to advance over the next six weeks, at least a little bit.

Buy To Open INTC 11JAN18 47 Puts (INTC180111P47)
Sell To Open INTC 11JAN18 50 Puts (INTC180111P50) for a credit of $1.11 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when INTC was trading near $49. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $108.50 and your broker would charge a $300 maintenance fee, making your investment $191.50 ($300 – $108.50). If INTC closes at any price above $50 on January 11, both options would expire worthless, and your return on the spread would be 57% (533% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates November 29, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Should You Buy the Post Earnings Dip in Charles River Laboratories (CRL)?

CRL has been contained within a rising trend channel for just over a year now. A spike higher following their latest earnings report was met with sellers at the top of the channel, resulting in a dip back to roughly the halfway point. Support is found at $125 which was where the stock was trading prior to the earnings inspired gap up. CRL has been outperforming the broader markets as it traded at record highs just a few weeks ago. The trend remains healthy, technically speaking, on a daily chart and higher time frames and there have not been any technical indications that the uptrend won’t continue.

CRL Chart November 2018

*source Tradingview.com

If you agree there’s further upside ahead for CRL, consider this trade which is a bet that the stock will continue to advance over the next four weeks, or at least not decline very much.

Buy To Open CRL 21Dec18 120 Puts (CRL181221P120)
Sell To Open CRL 21Dec18 125 Puts (CRL181221P125) for a credit of $1.53 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when CRL was trading near $127. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $150.50 and your broker would charge a $500 maintenance fee, making your investment $349.50 ($500 – $150.50). If CRL closes at any price above $125 on December 21, both options would expire worthless, and your return on the spread would be 43% (581% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates November 22, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

The main appeal from a technical perspective is the outperfomance of Motorla stock versus the S&P 500. This was first seen in late October when MSI bottomed very near to its mid-month low. Recent price action appears much more obvious as the equity index turned lower on November 8 while MSI managed to hold near highs. There seems to be a small hurdle near $130, but after several attempts bears have failed to elicit a downturn. This is especially significant considering that equities were broadly weaker during the period this resistance level was being tested. Considering the overall trend and the strength displayed as of late, the odds favor an upside break. The below chart has an overlay of the S&P 500 to illustrate the recent divergence.

MSI Chart November 2018

*source Tradingview.com

If you agree there’s further upside ahead for MSI, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open MSI 21DEC18 125 Puts (MSI181221P125)
Sell To Open MSI 21DEC18 130 Puts (MSI181221P130) for a credit of $1.84 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when MSI was trading near $130. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $181.50 and your broker would charge a $500 maintenance fee, making your investment $318.50 ($500 – $181.50). If MSI closes at any price above $130 on December 21, both options would expire worthless, and your return on the spread would be 57% (650% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates November 15, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

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I have been trading the equity markets with many different strategies for over 40 years. Terry Allen's strategies have been the most consistent money makers for me. I used them during the 2008 melt-down, to earn over 50% annualized return, while all my neighbors were crying about their losses.

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tastyworks, Inc. and Terry’s Tips are separate, unaffiliated companies and are not responsible for each other’s services and products. Options are not suitable for all investors as the special risks inherent to options trading my expose investors to potentially rapid and substantial losses. Options trading in a tastyworks account is subject to tastyworks’ review and approval. Please read Characteristics and Risks of Standardized Options before investing in options